I think the 4G has twice the RAM as the 3G too, which still isn't much at 256Mb. Also, the 4G has the Retina display with 960 x 640 pixels whereas the 3G has the older 480 x 320 pixel display. One more thing, the 3G will only install up to 4.2.x OS updates, I think, whereas the 4G can install the latest greatest updates, including iOS 5 when it is released.
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